Chronicle News Service Photo/ Jon M. BrouwerKen Blaauw checks an ear of corn on his 700-acre farm in Allegan County.

HOPKINS TOWNSHIP -- Two months ago, after heavy storms swept through with six inches of rain in 24 hours, Ken Blaauw's crop was trying to keep its head above water. He lost 5 acres of soybeans and 3 acres of corn.

Of course, he still had almost 700 acres left.

And today, the fields look much better.

"You've got good weather, you've got good crops," said Blaauw, who farms near Wayland. "That (rain) really hurt us then. The crops were looking poor at that time.

"We're looking at an excellent crop now."

In its first estimates this year based on actual field visits and farmer surveys, the U.S. Department of Agriculture raised its estimate of corn production and reported "nearly ideal" weather has helped Midwestern farmers recover from June's devastating floods.

Farmers are on pace to produce the second-largest corn and fourth-largest soybean crops in history, which may lead to lower prices for the key grains, according to the federal government.

Lower prices for corn, soybeans and wheat may provide some relief to meat producers who use corn and soybeans for feed, for makers of corn-based ethanol and maybe even for shoppers at supermarkets.

The USDA forecast that farmers will harvest 12.3 billion bushels of corn, up more than 570 million bushels from last month's estimate of 11.7 billion.

That's down 6 percent from last year's record crop of 13.1 billion bushels, but 17 percent above the 2006 harvest.

Compared to a poor local crop last year, "there just isn't any comparison" this year, said Paul Wylie, Allegan County director for the Michigan State University Extension Service.

"I think we're looking at better than average yield," he said. "We're actually in pretty good shape."

Average corn prices this year are expected to drop to $4.90 to $5.90 per bushel, down 60 cents from last month's forecast of $5.50 to $6.50.

Corn prices soared to record levels, near $8, after the floods, the worst to hit the Midwest in 15 years. But cooler, wetter weather since then will boost corn yields to 155 bushels per acre, up from last month's estimate of 148.4 bushels, the USDA reported.

Corn prices already have dropped to almost $5 per bushel, although that is still higher than in 2006, when a bushel cost $2.

"It's really been a whipsaw affair this year," Wylie said.

While corn farmers north of Grand Rapids did not experience the extent of flooding suffered elsewhere in the Midwest, neither have they had ideal weather this summer, said Fred Springborn, an extension educator in Montcalm County.

"We actually need rain. It's dry here," he said. "We're looking at an average crop at best. You get down south toward Grand Rapids or farther east, crops look a whole lot better.

"That's one of the things that adds to market volatility. When you get a crop nationwide that's un-uniform, it's hard to figure out where the average is. The weather this year has been more variable than what you would typically see. It's always too much or not enough."

The USDA has lowered its estimate for soybeans a bit, to 2.97 billion bushels from 3 billion last month.

Still, soybean prices also are expected to fall to $11.50 to $13 per bushel, down 50 cents from $12 to $13.50 last month.

High grain prices virtually have eliminated profits for chicken and beef companies this year.

Little Rock, Ark.-based Tyson Foods Inc., the world's largest meat company, said last month its third-quarter profit fell by 90 percent due to higher feed prices.

Pilgrim's Pride Corp., the nation's largest chicken producer, said July 29 it swung to a loss of $52.8 million, from profit of $62.6 million in its third quarter due to higher prices.

Ethanol producers such as Archer Daniels Midland Co. are also affected.

VeraSun Energy, a Brookings, S.D.-based ethanol producer which operates a plant in Woodbury, delayed opening its plant near Hankinson, N.D., until last month because of high corn prices.